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In China, the authorities continue to ease economic policy amid slowing housing/construction and, not least, Donald Trump threatening to impose further US tariffs on Chinese exports, notes the research team at Danske Bank.

Key Quotes

“Yesterday, the Chinese central bank injected USD74bn into the banking system – the largest ever using its ‘Medium-term Lending Facility’ – and later the government announced new fiscal measures as fiscal policy is becoming ‘more proactive’ and flexible to ‘external uncertainties’.   Easier monetary policy has, in our view, been the key driver behind CNY weakness.”